The Short Seller Who Called Enron's Fraud Said Tesla Was "Ridiculously Overvalued." Two Months Later, He Closed His 38-Year-Old Hedge Fund.

Jim Chanos built his legendary reputation by shorting Enron before its spectacular fraud-fueled collapse in 2001. So when he announced in May 2016 on CNBC that he was shorting Tesla at around $40 per share (split-adjusted), Wall Street listened. He called it a "museum of short selling" and maintained his bearish bet for seven years through multiple stock splits and a 500%+ rally. In September 2023, still underwater, he doubled down on CNBC calling Tesla "ridiculously overvalued" at 75x earnings. Two months later, with Tesla up 117% for the year and his thesis in ruins, Chanos announced he was shutting down his hedge funds after 38 years. The man who made billions betting against fraud got taken to the cleaners by a guy who sells electric cars and posts memes. As Elon Musk might put it: "Who's the fraud now?"